If the company sticks to its initial plan (selling 25,000 units at $ 1,200) what will the breakeven point be and when will the company reach it? 

 

2) If the company decides on 1 July 201n to decrease its sales price by 10% and if, thanks to this price reduction, it manages to sell 3,000 more units during the second semester than the initial forecast, how much profit will it make?

 What will the new breakeven point be and when will the company reach it? 

 

3) What sales volume should the price reduction generate in order to reach the target income of the initial plan? 

 

4) Give your opinion on this price reduction plan and justify it.

Answer rating: 100% (QA)

In order to calculate the breakeven point we need to consider the fixed costs and the contribution m... View the full answer